Home > indice, vix > Fear indicator is on the rise

Fear indicator is on the rise

SAN FRANCISCO (MarketWatch) — The Chicago Board Options Exchange volatility index, or VIX (VIX 23.84, +3.65, +18.08%) , continued to climb Tuesday as concern over European debt problems was compounded with a more than 200 point decline in the Dow Jones Industrial Average  (INDU 10,927, -224.76, -2.02%) . The VIX rose 23.7% in recent activity. Also, the iPath S&P 500 VIX Short-Term Futures (VXX 22.60, +0.23, +1.03%) , an exchange-traded fund tied to the VIX, saw a rise of 9% in recent activity.

I will be looking at the major resistance level of VIX to do some entry again. Do watch out!

Just saw another article on the reason of the selldown.

The drop in the U.S. indexes follows even steeper declines in European markets and paralleled a drop in some currencies and commodities. The euro slid below $1.30 for the first time in a year, while oil dropped 4% to under $83 a barrel. Treasury prices rallied to two-month highs.

“It is clearly one of those days when we’re reminded the world is still a dangerous place, and we’re always subject to accidents, man made or otherwise,” said Stuart Hoffman, chief economist at PNC Financial.

“It is part Greece, part oil disaster and part unsuccessful terrorist plot and everyone is running for safety,” said Hoffman, pointing to the rally in U.S. Treasury bonds and the dollar.

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